(MENAFN) On Wednesday, Leader Joe Biden made a bold call for a significant escalation in US tariffs on Chinese imports of steel and aluminum. He leveled accusations against Beijing, alleging that the Chinese government was providing state funds to subsidize domestic firms, enabling them to unfairly undercut American competitors in global markets.
Biden specifically accused China of engaging in "dumping," an illicit trade practice in which a country floods international markets with a product at artificially low prices, thereby distorting competition and harming the industries of importing nations.
"The prices are unfairly low because China's steel companies don't need to worry about making a profit because the Chinese government is subsidizing so heavily," he informed a gathering of steelworkers in Pittsburgh, Pennsylvania. "They're not competing. They're cheating. They're cheating. And we've seen the damage here in America."
US Trade Representative Katherine Tai is currently conducting an investigation into China's export practices related to steel and aluminum. Leader Biden stated that if this investigation verifies the existence of anti-competitive trade practices, he will instruct Tai to triple the tariffs on Chinese aluminum and steel imports. Currently, these tariffs stand at approximately 7.5 percent, established during the Trump administration.
Biden also acknowledged that China is attempting to circumvent existing tariffs by routing imports through Mexico, leveraging its free trade agreement with the US. He assured steelworkers that he will collaborate with the Mexican government to address this issue and ensure fair trade practices.
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